DOJ Press Release on CA Medical Marijuana Crackdown

Here is the press release issued by the Department of Justice (Eastern District of California) today on the new federal crackdown on medical marijuana businesses: (Received by e-mail, no link yet.)

SACRAMENTO, Calif.October 7, 2011 – The four California-based United States Attorneys today announced coordinated enforcement actions targeting the illegal operations of the commercial marijuana industry in California.
The statewide enforcement effort is aimed at curtailing the large, for-profit marijuana industry that has developed since the passage of California's Proposition 215 in 1996. That industry has swelled to include numerous drug-trafficking enterprises that operate commercial grow operations, intricate distribution systems and hundreds of marijuana stores across the state — even though the federal Controlled Substances Act makes illegal the sale and distribution of marijuana.

[More...]

While the four United States Attorneys have tailored enforcement actions to the specific problems in their own districts, the statewide enforcement efforts fall into three main categories:

· Civil forfeiture lawsuits against properties involved in drug trafficking activity, which includes, in some cases, marijuana sales in violation of local ordinances;

· Letters of warning to the owners and lienholders of properties where illegal marijuana sales are taking place; and

· Criminal cases targeting commercial marijuana activities, including arrests over the past two weeks in cases filed in federal courts in Los Angeles, San Diego, Sacramento and Fresno.

The enforcement actions being announced today are the result of the four United States Attorneys working with federal law enforcement partners and local officials across California to combat commercial marijuana activities that are having the most significant impacts in communities.

"The actions taken today in California by our U.S. Attorneys and their law enforcement partners are consistent with the Department's commitment to enforcing existing federal laws, including the Controlled Substances Act (CSA), in all states," said Deputy Attorney General James Cole. "The department has maintained that we will not focus our investigative and prosecutorial resources on individual patients with serious illnesses like cancer or their immediate caregivers. However, U.S. Attorneys continue to have the authority to prosecute significant violations of the CSA, and related federal laws."

Benjamin B. Wagner, the United States Attorney for the Eastern District of California stated: "Large commercial operations cloak their moneymaking activities in the guise of helping sick people when in fact they are helping themselves. Our interest is in enforcing federal criminal law, not prosecuting seriously sick people and those who are caring for them. We are making these announcements together today so that the message is absolutely clear that commercial marijuana operations are illegal under federal law, and that we will enforce federal law."

André Birotte Jr., the United States Attorney for the Central District of California, stated:"The federal enforcement actions are aimed at commercial marijuana operations, including marijuana grows, marijuana stores and mobile delivery services - all illegal activities that generate huge profits. The marijuana industry is controlled by profiteers who distribute marijuana to generate massive and illegal profits."

Laura E. Duffy, the United States Attorney for the Southern District of California, commented: "The California marijuana industry is not about providing medicine to the sick. It's a pervasive for-profit industry that violates federal law. In addition to damaging our environment, this industry is creating significant negative consequences, in California and throughout the nation. As the number one marijuana producing state in the country, California is exporting not just marijuana but all the serious repercussions that come with it, including significant public safety issues and perhaps irreparable harm to our youth."

Melinda Haag, the United States Attorney for the Northern District of California, said: "Marijuana stores operating in proximity to schools, parks, and other areas where children are present send the wrong message to those in our society who are the most impressionable. In addition, the huge profits generated by these stores, and the value of their inventory, present a danger that the stores will become a magnet for crime, which jeopardizes the safety of nearby children. Although our initial efforts in the Northern District focus on only certain marijuana stores, we will almost certainly be taking action against others. None are immune from action by the federal government."

Dozens of letters have been sent over the past few days to the owners and lienholders of properties where commercial marijuana stores and grows are located. In the Southern and Eastern Districts, the owners of buildings where marijuana stores operate have received letters warning that they risk losing their property and money derived from renting the space used for marijuana sales. In the Central District, where more than 1,000 stores are currently operating, prosecutors have sent letters to property owners in selected cities where officials have requested federal assistance, and they plan to continue their enforcement actions in other cities as well. In the Northern District, owners and lienholders of marijuana stores operating near schools and other locations where children congregate have been warned that their operations are subject to enhanced penalties and that real property involved in the operations is subject to seizure and forfeiture to the United States.

In the Central District and Eastern District, prosecutors this week filed a total of seven civil forfeiture complaints against properties where landlords are knowingly allowing marijuana stores to operate. One complaint filed against a south Orange County strip mall, for example, alleges that eight of the 11 second-floor suites in the buildings are occupied by marijuana stores and that one small city has spent nearly $600,000 in legal fees in its attempt to eradicate the illegal operations.

Criminal cases recently unsealed across the state reveal marijuana operations that produce huge profits, send their money and illegal narcotics to other states, and market products to young people. In a case involving a now-closed marijuana store in the San Fernando Valley, two conspirators allegedly used encrypted smartphones to coordinate marijuana sales to places as far away as New York and estimated that they would each receive $194,000 in profits per month. In a San Diego dispensary case unsealed last week, six defendants were charged in a 77-count indictment that alleges a wide-ranging conspiracy that included numerous marijuana sales to under-aged persons.

"The DEA and our partners are committed to attacking large-scale drug trafficking organizations, including those that attempt to use state or local law to shield their illicit activities from federal law enforcement and prosecution," said DEA Administrator Michele M. Leonhart. "Congress has determined that marijuana is a dangerous drug and that its distribution and sale is a serious crime. It also provides a significant source of revenue for violent gangs and drug organizations. The DEA will not look the other way while these criminal organizations conduct their illicit schemes under the false pretense of legitimate business."

Victor S.O. Song, Chief, IRS Criminal Investigation, stated: "IRS Criminal Investigation is proud to work with our law enforcement partners and lend its financial expertise to this effort. We will continue to use the federal asset forfeiture laws to take the profits from criminal enterprises."

Across California, the federal government will continue to investigate and prosecute those whose actions not only violate federal laws, but also the state laws regarding the use of marijuana. The problems associated with the marijuana business have dramatically increased over the past two years, even in areas where local governments and citizens actively oppose these businesses.

The statewide coordinated enforcement actions were announced this morning at a press conference in Sacramento.

Our tax dollars at work. They complain about government spending, and they're talking about cutting funding for anything that helps the poor and the elderly? If they want to save money, they can start by stopping this type of absolute horse manure.

Fuk-it, Greek Fest this weekend and I plan on being one of the Bad Kids.

In Class
We are a minority
Got no
Respect for authority
And won't
Play well with others
And steal
From all your mothers
They'll try
To give us pills
Oh wait
Give us all the pills
Go cry
Mom I gotta go to court
Dad won't
Pay his child support

I'm not saying it should be enforced; to the contrary, I think pot laws are stupid and resources would better be deployed elsewhere. However, shrieking about how the USAs are perpetrating injustice when they do enforce the law is misguided.

The California voters did not ban Medical Marijuana. They voted for it and the law has been on the books since 1996.

California's voters adopted the Compassionate Use Act in 1996 which allows patients with a valid doctor's recommendation, and the patient's designated Primary Caregivers, to possess and cultivate marijuana for personal medical use, and has since been expanded to protect a growing system of collective and cooperative distribution. It passed with 5,382,915 (55.6%) votes in favor and 4,301,960 (44.4%) against.

12 other states have approved measures permitting medical use of marijuana.

they did no such thing. congress, by itself, with no direct input from the voters, criminalized cannabis. indirectly, the voters placed these people in congress, by i can't seem to find any evidence that they ran a campaign based on their willingness to make it illegal to possess/use pot.

majority (approx. 74%) who are o.k. with medical marijuana. About evenly split on legalizing it for personal use.

Another thing that Obama's DOJ has done is make it illegal for anyone to sell guns to people on medical marijuana. From what I've read this is not going over well in places like Montana where the voters have voted in favor of medical marijuana and they are predominately pro gun. Tester, who I think, is in a tough race to maintain his Senate seat must be gritting his teeth right about now.

"Large commercial operations cloak their moneymaking activities in the guise of helping sick people when in fact they are helping themselves."

Gee, does this possibly apply to Health Insurance Companies? Big Pharma? And here I thought it was the amurrican way to make profits off sick people?

Wonder how many members of Congress we could get to actually watch Ken Burns' Prohibition? Isn't insanity continuing to do the same thing that did not work before?

Well, we know you gotta justify the more big bucks to law enforcement and prison industries to justify the more big bucks they want to spend on more expensive prisons when we are in "deficit crisis." No money for second chance or drug programs. We can't afford that. Who has the best paid lobbyists, after all? Pass irrational laws and then claim you have to enforce them to achieve respect for the law. Not logical.

Wonder which pharmaceutical company will be awarded the patten for this new prescription drug. :-(

As for using marijuana as medicine, Sabet said the proper path should be one where components of marijuana are studied and possibly approved by the Food & Drug Administration for use in pharmaceuticals.

"You synthesize and deliver it in the way we deliver medicines in this country," he said, "through pharmacies -- not dispensaries with 300-pound bouncers, bars on the windows and neon lights. link

Will the future see marijuana as a schedule 2 illegal drug unless purchased as a Tier 4 prescription drug?

sold legally, as a prescription drug, under the name Marinol, patented by the Belgian company Solvay Pharmaceuticals. There have been criticisms of Marinol over the years. From the article:

It takes over one hour for Marinol to reach full systemic effect,[74] compared to minutes for smoked or vaporized cannabis.[75] Some patients accustomed to inhaling just enough cannabis smoke to manage symptoms have complained of too-intense intoxication from Marinol's predetermined dosages. Many patients have said that Marinol produces a more acute psychedelic effect than cannabis, and it has been speculated that this disparity can be explained by the moderating effect of the many non-THC cannabinoids present in cannabis. For that reason, alternative THC-containing medications based on botanical extracts of the cannabis plant such as nabiximols are being developed. Mark Kleiman, director of the Drug Policy Analysis Program at UCLA's School of Public Affairs said of Marinol, "It wasn't any fun and made the user feel bad, so it could be approved without any fear that it would penetrate the recreational market, and then used as a club with which to beat back the advocates of whole cannabis as a medicine."

Inhaled marijuana has the advantage of speed, you take in only as much as you need and can then stop, and you're not vomiting it up before it can take effect. Unfortunately, marijuana is too easy for the average person to procure (or even grow themselves) if they're not too worried about the cops raiding their house, even in states where medical marijuana is legal, and therefore Big Pharma can't make big profits on it- unless the feds continue, and maybe escalate, their war on marijuana.

Currently there is a surplus of good product available in California due to more growers induced by the profit potential in the bad economy. Prices have been falling.
The number of dispensaries has increased to distribute the increased product availability and retail prices have also fallen in California.
Admittedly gangs and experienced criminals have entered the business and control portions of the business, both as growers and as retailers through dispensaries. Furthermore the narco economy that has been created is morally destructive to society.
However by closing dispensaries, it will force retail sales onto the streets controlled by gangs and violence will increase as they vie for distribution locations. In addition more growers will wholesale the product out of state as there is a significant price difference for east coast distribution. As more product moves east, gangs and criminal elements in the east will enjoy a greater profit margin as wholesale prices will eventually drop as the California exports increase. (retail prices in the east do not drop as fast as wholesale prices). The result will be even more gang activity and crime elements entering retail distribution in the east and violence will increase.
There are low barriers to entry to grow the product so supply will not contract no matter what enforcement action is taken. The problem with the product is the retail distribution. (The demand issues have been resolved by lax prescription requirements)
This is a commodity product that corporations such as tobacco companies could grow cheaper than the home grower and market it with controlled quality and brand differentiation. The government could monetize the product by giving a monopoly to the tobacco companies thereby destroying the narco economy along with the revenue source of gangs and other criminal elements.
The government revenue could be used to treat the substance abusers as a medical condition not criminal problem.
If the U.S. grew its own product and controlled distribution it would also resolve a lot of the drug violence problems in Mexico.
The current enforcement action appears to be lawyers and police, basically civil servants, who have no business experience and see criminal law as a way to control behavior.
The product has to be distributed in the same manner as the other drugs, alcohol and nicotine.
The abusers of the product need to be identified and treated and the same moral suasion that has lessened smoking in California can be used to control the use. Criminal law should only be used incidentally as it is used in the control of alcohol and nicotine.
Expect to see an increase in street violence by gangs and criminal elements just like what occurred with crack cocaine and alcohol prohibition.

In New Hampshire in 2007, he said he would not have the Justice Department prosecute medical marijuana.

Mr. Holder said the new approach was consistent with statements made by President Obama in the campaign and was based on an assessment of how to allocate scarce enforcement resources. He said dispensaries operating in accord with California law would not be a priority for the administration. (my emphasis.)

discussed location of MJ clinics close to schools, people coming to CA solely for purpose of obtaining med.MJ cert., and crime @ dispensaries--burglary and robbery. Should we close down jewelry stores?

that they are "tough on crime" {medical marijuana} to distract from the fact that are definitely not going to be tough on crimes committed by their savvy friends.

For perhaps the first time, President Barack Obama was forced to explain why there have been no prosecutions of Wall Street executives for their fraudulent actions during the run-up to the financial crisis. Asked by Jake Tapper to explain this behavior, Obama basically suggested that most of the actions on Wall Street weren't illegal but just immoral, and that his Administration worked to re-regulate the financial sector with the Dodd-Frank reform legislation.

"Banks are in the business of making money, and they find loopholes," the President said. Apparently forging and fabricating documents to prove ownership of homes that are subsequently stolen from borrowers is now a loophole. link

President Obama enjoyed much political benefit from using the word, "change," and used it to great advantage.
But, I think the times are serious enough today that a smart politician should coin and own a different word.

I think voters would sit up and listen to a politician who said, "I don't believe in Liberal policies nor do I believe in Conservative policies, I believe in Smart policies."

If its all about marketing and sound bites I can see a lot of pluses with Obama saying something like, I promised you smart policies, and this bill will be smart policy. Or I promised you I would veto dumb bills, and this is a dumb bill.

Forget the niceties and protocol, the voters respond to simple blunt talk, and hopefully by using this technique the debate would be on the merits of the bill, and not be hijacked with nonsense like "socialism, or class warfare."